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The Act mandates 30-day invoice payments for all public sector contracts, a change the NFRC hopes will improve payment culture across the construction industry. "Poor payment practices continue to unfairly strain the finances of roofing and cladding businesses, critically harming growth potential and jeopardising the government’s housing targets," said NFRC Group CEO James Talman. "I hope that better payment standards from local authorities will strengthen the culture across the industry."
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The shift to awarding contracts based on the "Most Advantageous Tender" rather than just the lowest bid is another positive step, according to the NFRC. Talman emphasised the importance of considering the whole-life value of buildings, noting that operational costs often represent the majority of expenses. "Up to 80% of a building’s lifetime costs are operational," he said. "Procuring authorities have an excellent opportunity to focus on sustainability and high-quality workmanship to deliver real value throughout a building’s existence, not just what appears cheapest at the outset. For quality work, they must look to quality and competent workers, like those represented by NFRC members."
The Act also introduces a central debarment list to exclude underperforming suppliers, raising standards across the supply chain. "The new central debarment list must be proactively used to enforce best practice across the construction sector," Talman stated.
The NFRC is encouraged by the Act's focus on social value and the potential for simplified bidding processes to benefit SMEs, particularly those investing in apprenticeships. "SMEs continue to deliver an outsized proportion of apprenticeships, and it is high time they are recognised for this essential support to sustain our industry," Talman said. "We hope these changes, along with a focus on the Most Advantageous Tender, will deliver real benefits for NFRC members and the wider industry."
